WCI Communities Inc, a Florida-based developer of luxury homes and condominiums with an office in Valhalla, has filed for Chapter 11 bankruptcy protection, claiming it owes approximately $1.9 billion to more than 50,000 creditors against roughly $2.2 billion in assets.
A U.S. Bankruptcy Court judge in Wilmington, Del., last month approved a relief package that allows the BonitaSprings company to continue operations and pay employee salaries and commissions and protects homebuyers from any impact of the bankruptcy. Creditors, the largest of which is The Bank of New York with $650 million in loans, met last week in Delaware.
WCI has two residential developments in this region: Four Corners, a community of single-family homes in Fishkill; and Rivington, a townhouse and condo development in Danbury, Conn.
Included as debtors in the Chapter 11 petition are 26 WCI subsidiaries with offices at 115 Stevens Ave. in Valhalla. A company spokesperson did not specifically reply to a query about continued operations and employment there.
WCI reported a second-quarter net loss of $100.2 million, compared with a net loss of $33.2 million in the second quarter of 2007.